Office and retail rents weaken in Q3 but occupancy rates improve slightly: URA

Prices and rents of office and retail space in Singapore fell in the third quarter, although occupancy rates improved for both segments.
Prices and rents of office and retail space in Singapore fell in the third quarter, although occupancy rates improved for both segments. PHOTO: ST FILE

SINGAPORE - Prices and rents of office and retail space in Singapore fell in the third quarter, although occupancy rates improved for both segments.

Prices of office space slipped 0.1 per cent in the third quarter, compared with an increase of 0.3 per cent in the second quarter, according to final quarterly figures from the Urban Redevelopment Authority released on Friday (Oct 23).

Rents of office space fell 2.9 per cent in the third quarter, after falling 2.6 per cent in the second quarter.

The overall vacancy rate went down slightly, moderating 0.2 percentage points to 9.6 per cent.

This was as the amount of occupied office space rose by a net 15,000 sq m - compared with a 38,000 sq m net increase in the second quarter. However, the stock of office space fell by a net 3,000 sq m, compared with a 8,000 sq m net increase previously.

On the retail front, prices fell 0.3 per cent in the third quarter, compared with a 0.5 per cent decline in the second quarter.

Rents fell by 2.0 per cent, faster than a 0.5 per cent fall previously.

Vacancy rate moderated 0.2 percentage points to 7.0 per cent.

The amount of occupied retail space fell by a net 13,000 sq m in the third quarter, compared with the zero net change in the second quarter, while the stock of retail space fell by a net 24,000 sq m, compared with a 25,000 sq m net increase previously.

wrennie@sph.com.sg